Amid a wave of new funds in Africa’s thriving tech sector, Renew Capital has emerged as a distinct player. With the dual aim of generating returns for investors and founders, and changing the global image of Africa from a place of giving to a place of investing, Renew Capital is making significant progress.
Matt Davis, CEO and founder of Renew Capital, in a pleasant and promising conversation about the opportunities for Mozambican startups, announces the fund and talks about the criteria for joining.
Profile Mozambique: Renew Capital has just launched Renew Venture Lab 2. What does this initiative consist of and what is its scope?
Matt Davis: The purpose and vision of the Renew Venture Lab is to identify some of the most promising potential entrepreneurs across the African continent who are in the early stages of growth, having developed what we call a minimum viable product. These entrepreneurs have already tested their products, verified their viability and seen strong interest and acceptance from the market, achieving what is known as product-market fit. At this point, they are ready to scale up their business operations. In short, our aim is to identify these entrepreneurs and help them develop, enabling them to become leaders in their respective sectors in Africa.
In terms of areas of interest, we look for highly scalable companies, generally characterized by their innovation in terms of assets and technology. We are currently present in 14 countries and Renew Capital aims to be one of Africa’s leading investment companies by 2025
PM: How would you rate the first edition of the Venture Lab Fund? And what were the most incisive moments?
MD: Reflecting on Renew Venture Lab 1 (RVL1), it’s remarkable to realize that time will truly reveal the quality of the choices we made in terms of selecting companies. Personally, I’m quite optimistic about the current state of our portfolio. I truly believe that we have invested in some truly exceptional companies. In addition, the success of RVL1 has been evident in allowing us to expand our investments into secondary markets such as Mozambique, Zambia and Tanzania for the first time.
So, based on the current momentum, I consider RVL1 a resounding success.
With regard to the milestones of RVL1, I must stress that it was a truly exceptional experience. We had the unique opportunity to acquire high-quality companies for investment, as well as attracting incredible founders to the program.
All in all, RVL1 was a significant milestone for all of us, resulting in unparalleled investment and growth opportunities in several markets.
PM: How many Mozambican startups are currently participating in the program at this stage?
MD: At the moment, applications are open and we are still receiving applications.
Our expectation is to reach the same number of applications as last year globally, which was 500 applications, or possibly even exceed that number this year.
Specifically for Mozambique, we estimate that between 5% and 10% of applications will come from this country. Our goal is to end up with one, two or even three startups from Mozambique in our portfolio. However, this depends on the quality of the pipeline and several factors, including the ability of local startups to use the resources we offer and understand the role we play for them.
It’s a complex process and it’s crucial that the startup community in Mozambique is aware of the various support programs we offer in terms of investment and other resources. We are optimistic and working hard to ensure even greater success than that achieved in the first cycle.
PM: What are the selection criteria and how can startups submit applications? And what are the benefits, therefore, of actually being part of this program?
MD: Renew Capital prioritizes close involvement with startup founders, especially during the initial phase. It is crucial that these founders demonstrate a solid understanding of the market, are focused on growth and offer a solution to a significant problem. In addition, it is essential that they possess determination and a clear vision of their goals.
Although it’s not always easy to find founders with this commitment, ambition, determination and resilience are indispensable attributes. The main benefit of having a highly committed founder is access to the financial resources needed to drive the company’s growth and expand in the market. In addition, the support and guidance offered by Renew helps to ensure that the startup’s product thrives in the market. This accompaniment is fundamental to the company’s long-term success.
PM: What recommendations do you have for the founders and what can they improve to stand out in this program?
MD: The advice I’d like to share is aimed at the founders of startups in Mozambique, highlighting the energy and enthusiasm they possess. However, it is crucial that they are aware that they will face challenges and failures along the way. My recommendation is that when you encounter difficult moments and failures, don’t give up. Persistence in the face of difficulties is essential, as success often comes from these experiences.
One of the greatest benefits that a program like Renew Venture Lab 2 offers is the training program. Internally, we call it the Pre-Lab Training Program. All applicants are automatically enrolled in this program, regardless of whether they progress to subsequent phases or not.
This training program offers valuable tools for founders, and it’s crucial that they make the most of this opportunity. Don’t just read the materials superficially, but try to absorb all the knowledge available. If possible, I even recommend revisiting the program to reinforce the learning and consolidate the skills acquired.
Source: Matt Davis
About Renew Capital:
Renew Capital is an Africa-focused impact investment firm that supports innovative companies with high growth potential. Renew Capital manages investments on behalf of Renew Capital Angels, a global network of angel investors, foundations and family offices seeking financial returns and sustainable social impact.
